Federal Reserve Mulls Changes to Repo System
June 22, 2009 by admin · Leave a Comment
The Federal Reserve is considering creating a utility to replace the Wall Street banks that handle US repo market transactions, the Financial Times reported yesterday, citing people familiar with the matter.
The proposal is partly motivated by concerns that the structure of the US overnight repurchase market may have exacerbated the financial turmoil that followed the collapse of Lehman Brothers in September.Fed officials plan to meet next month with market participants to discuss reforms, the paper said. Read more…
